Stellar(STEL) Soars 2.69% in Two Days, Hits 2025 High

Stellar(STEL) rose 0.22%, marking its second consecutive day of gains, with a total increase of 2.69% over the past two days. The share price reached its highest level since March 2025 today, with an intraday gain of 1.24%.

The strategy of buying STEL shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a maximum drawdown and sharp decline in 2022, followed by recovery and steady growth in 2023 and 2024. However, the overall performance was somewhat volatile, with a peak-to-trough decline of 64.8% during the bear market in 2022. The strategy showed resilience in 2023 and 2024, with steady gains of 76.7% and 28.8%, respectively, indicating potential for recovery from previous losses. However, the 5-year annualized return was only 6.7%, suggesting that while there was some growth, it was relatively modest compared to the overall market volatility. The strategy's beta of 1.5 indicated that it was moderately risky, in line with the broader market. Overall, while the strategy showed potential for recovery from recent losses, the returns were somewhat muted, and the volatility highlighted the importance of risk management in such a dynamic market environment. (See attached backtest table for detailed performance metrics).

One of the most significant factors contributing to the recent price movement of Stellar Bancorp Inc (STEL) is the bullish crossover of its 200-day moving average. On Monday, the stock price crossed above its 200-day moving average of $27.57, reaching as high as $27.62. This technical indicator is often seen as a positive signal for investors, suggesting that the stock may continue to trend upward in the near future. The 200-day moving average is a widely used technical analysis tool that helps traders and investors identify the overall trend of a stock. When a stock's price crosses above its 200-day moving average, it is often interpreted as a bullish signal, indicating that the stock may be entering a period of sustained growth. This technical indicator, combined with other positive factors, could contribute to the continued upward momentum of Stellar Bancorp Inc's stock price.